Stellantis Prepares for Major Leadership Overhaul

Stellantis is undergoing another significant management shakeup as the automaker looks to reset its strategy following the departure of former CEO Carlos Tavares. According to sources close to the matter, key executives are stepping down, and a new leadership structure is being put in place to address ongoing operational challenges.

Key Leadership Exits – 

One of the biggest departures is Chief Software Officer (CSO) Yves Bonnefont, a longtime Tavares ally. Bonnefont has overseen Stellantis’ software division, which has been blamed for delays in crucial model launches across both the U.S. and European markets. His responsibilities will now fall under Chief Engineering and Technology Officer Ned Curic as part of an effort to streamline operations and improve efficiency.

Additionally, sources indicate that Peugeot CEO Linda Jackson is also leaving, marking another major leadership change. Jackson’s exit further signals Stellantis’ intention to restructure its executive team as it shifts direction under new leadership.

Leadership Void and Strategic Adjustments – 

Since Tavares was pushed out in December due to declining sales and widespread cost-cutting measures that frustrated investors and policymakers, Stellantis has been operating under the temporary oversight of Chairman John Elkann and a 10-member executive committee. Elkann has been working to mend relationships with governments and dealerships, particularly as the company refocuses on strengthening its hybrid vehicle lineup to better align with market demand.

Richard Palmer, the former Chief Financial Officer (CFO) who now serves as a special adviser to Elkann, is reportedly playing a crucial role in assessing the company’s weaknesses and identifying a suitable successor for the CEO position. The appointment of a new chief executive is expected in the second quarter of this year, although the timeline remains flexible.

Reinvesting in Growth – 

Despite leadership turmoil, Stellantis has been ramping up investments in key markets. In the U.S., the company recently confirmed it would proceed with its original plan to produce a new midsized Ram pickup truck at the previously idled Belvidere Assembly Plant in Illinois. This decision will bring back approximately 1,500 union workers and marks a strategic shift toward reinvigorating its American operations.

This move follows a high-profile meeting between Elkann and President Donald J. Trump just before his inauguration. While details of their discussion remain unclear, the decision to revive the Belvidere plant aligns with broader industry efforts to secure manufacturing jobs in the U.S.

With Stellantis aggressively working to recover from recent setbacks, all eyes are on its next CEO appointment and how the automaker navigates this crucial transition period.

Source: Bloomberg